Professional indemnity insurance factsheet #5

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What is Professional Indemnity insurance?

Professional Indemnity insurance is designed for professionals who provide advice or a service to their customers. It protects you against legal costs and claims for damages to third parties which may arise out of an act, omission or breach of professional duty in the course of your business.

If a mistake or omission occurs in the course of your work that results in financial loss or injury to a third party (e.g. a customer)—that customer may take legal action against you to recover their losses. Professional Indemnity insurance seeks to protect both your assets and your reputation, should this occur.

Why do I need it?

Defending yourself from a professional conduct claim can cost you time, money and damage your reputation, regardless of whether the allegations are founded or not. If things do go wrong you could be held responsible not only for your own actions but for those of your partners, employees or volunteers.

All dance professionals need to ensure they are protected against unfounded allegations as well as breaches of professional duty. A Professional Indemnity insurance policy safeguards you and your business by providing cover against such claims, including the cost of defending the action—so you can conduct your business with the confidence that both your assets and your reputation are protected.

Who is covered by my Professional Indemnity policy?

A Professional Indemnity insurance policy should cover not only your business but also any principal, employee, director, partner or related entity whilst acting with the scope of their duties.

How much cover do I need?

A limit of $5,000,000 is automatically included if you take out an annual Public Liability Policy with Aon and Ace Insurance Limited.

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